@Anonymous wrote:Stay with your debit card. The debit card withdrawals from your bank account instantly and when you return an item it is instantly put back onto your debit card. Having credit cards are important for features, for example: Discover IT has 5 percent back on gas purchases now until april 2015. Credit cards are high interest loans and utilizing on an account for no reason won't help your credit. Stay honest with your credit usage, if you have too many credit cards let them close automatically. Credit cards are for features, loans are for borrowing. Credit cards offer short term borrowing, for example: a short term credit card loan (Purchase) for 3 months on a 15 percent credit card will cost 15/12=1.25 percent a month interest. 1.25X3= 3.75 percent. If you borrow a 1000 between all of your credit card accounts. you would pay 1000X3.75=37.5 (1000X.0375=37.5). 37.5 dollars of interest over three month borrowing on credit cards. You can average you account percentages, take all your visa,mastercard,discover,american express cards and average the interest rate. For example: 15,12,20,20,19 percent would average to 17.2 percent to borrow on credit cards if they all were charged 200 dollars, which is 20 percent utilization. (15+12+20+20+19=86/5=17.2) If you want to utilize, use a low interest loan and pay it in fixed payments, that will help your credit and save you a lot of money. Loans from a bank can average 10 percent or less. Let your credit naturally clean itself legally and dont try to fool the system. Hope this helped.
Not sure who your referring to here. But there is no interest to worry about because there is no balance carried month to month. All charges are paid off within a few days. If you use it like a charge card instead of a credit card, the issuer gets vendor fees through the usage, and they have little risk because of no carried balance, and you pay no interest because of no carried balance. The idea here is to develop this habit of card usage - yes it does take discipline and planning - and then carry it over when you can get the reward cards to maximixe their reward value. You initially only do this with ONE card. It's not like you're charging up a bunch of cards and manipulating balances back and forth.
This is about BUILDING your credit and developing certain habits, not fooling the system.
I agree